Tata clarifies comments on Ambani home

Tata Sons today clarified its chairman, Ratan Tata’s reportedly critical remarks in The Times of London over Reliance Industries’ chairman Mukesh Ambani’s million-dollar home in Mumbai, saying his comments on wealth were in the larger context of the growing disparity in the society and not targeted at any individual.

“The report is out of context and factually incorrect. Tata’s comments on wealth are in the larger context of the growing disparity in the society. The comments seem to have been deliberately sensationalised,” a statement from Tata Sons said. There have been words, individuals and statements that have not been mentioned by Tata during the course of the interaction, the statement added.

Tata had said Ambani’s new home, Antilla, in Mumbai was an example of lack of empathy for the poor and he was surprised Ambani wanted to live in such opulence. “It makes me wonder why someone would do that…the person who lives in there should be concerned about what he sees around him and [asking] can he make a difference,” The Times quoted Tata. “If he is not, then it’s sad, because this country needs people to allocate some of their enormous wealth to finding ways of mitigating the hardship that people have.”

In the interview, Tata also suggested that Noel Tata, his relation and a contender to succeed him, may not be ready for the top post yet because of less exposure. Eleven candidates, including Noel (who is Tata’s half-brother) have reportedly been shortlisted for the post of the Group chairman.

Tata said he was not involved in the search for his successor, but suggested he did not think Noel, who took over as head of international operations last year, was ready for the role. “I think if he (Noel) is to run this, he should have greater exposure than he has had. Partly his not having it has been his own choice,” said Tata, who will retire next year when he turns 75. On the other issue where the interview had reported him as having been critical, on the work culture in Land Rover and Jaguar, acquired by the Tata Group in 2008, Tata was quoted as saying managers’ work ethics were not to go the extra mile and to leave early on Friday afternoons.

The comments were not targeted at the company’s managers today, but for those at the time of acquisition, the statement said. Adding, the new management had eliminated those practices.